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Arla holds July milk price as dairy market 'stabilises'

The Arla Foods amba on-account price for conventional milk will remain unchanged during July 2016.
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However, July also sees a new quarter’s (April – June) average exchange rate being introduced to the pricing mechanism resulting in a small reduction of 0.07 pence per litre, taking the UK standard litre price to 19.05ppl.

 

Arla Foods amba board director Jonathan Ovens said: “Growth in intake has reduced in recent weeks and this is helping to balance supply and demand. As a consequence, market prices that we have seen deteriorate over the past 12 months are levelling out.

 

“The trend towards a more stable market situation has strengthened over the last month and although we are not yet in a position to increase the price, holding the price sends out a signal to our owners, who continue to face challenging times, that we believe the market situation is more stable.”

 

Last week Meadow Foods announced it would be increasing the price it pays for milk by 2ppl, with a 1ppl increase in July and a further 1ppl increase in August.

 


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